LD Lossdog Research
topic

Margin Requirements

5 matching records.

Q&A

Why did the CE have to crank up the margin for SL futures?

The increase in margin requirements for SL futures is attributed to market mechanics or potential conspiracy. The speaker suggests it could be due to the notional value of the trade increasing significantly, or the CME raising requirements due to concerns about market stability.

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Actionable takeawayMargin requirements for futures can increase due to changes in the notional value of the trade or decisions by exchanges to raise requirements for stability.
futures tradingMargin Requirements
high confidenceVerify in video at 1:26:19 ↗
Q&A

Is the rules going to be similar to how futures are with the like margin?

The rules are not similar to futures margin requirements. The changes are not about margin requirements but about limiting the number of day trades for accounts under $25,000.

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Actionable takeawayThe changes are about limiting day trades, not margin requirements.
Margin Requirementstrading rules
high confidenceVerify in video at 51:29 ↗
Q&A

What broker is good for futures with low margin minimums?

The speaker states that CME sets the requirements for margin minimums, and all firms must adhere to these numbers. Some firms may offer lower intraday margin requirements, ranging from 25% to 50%. The speaker advises traders to contact their firm to inquire about intraday futures margins and whether their technology supports such features.

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Actionable takeawayTraders should contact their broker to inquire about intraday margin requirements and whether their technology supports such features.
futures tradingMargin Requirements
high confidenceVerify in video at 51:50 ↗
Q&A

I keep hearing that futures are more capital efficient than equity options.

Futures options are more capital efficient on entry compared to equity options, but the capital efficiency can vary depending on the specific contract and market conditions. Futures options typically require less capital due to dynamic margin requirements, but the efficiency may not hold throughout the entire trade lifecycle.

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Actionable takeawayFutures options are more capital efficient on entry, but the efficiency may change as the trade progresses.
futurescapital efficiencyMargin Requirements
high confidenceVerify in video at 20:18 ↗
Q&A

Are you doing any trades in a SPX or SpaceX?

The speaker discusses margin requirements for short options, particularly for SpaceX, and mentions a trade involving a broken-wing butterfly strategy. The speaker also notes that the margin requirements for short options are full, with no relief.

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Actionable takeawayUnderstanding margin requirements is crucial for short option strategies, and the broken-wing butterfly strategy was executed with a 25 cent credit.
SPXMargin RequirementsTrading Strategy
high confidenceVerify in video at 18:37 ↗